The Housing Authority expects to generate an overall budget surplus of HK$3.7 billion for the upcoming fiscal year, 35 percent lower than the current year, which ends March 31.
Its surplus is projected to drop even further, to HK$960 million in three years' time, mainly due to a worsening deficit from the public rental housing account.
The authority says the rental housing account deficit in the next financial year is expected to hit HK$1.7 billion, more than double the deficit for the current fiscal year.
It says the deficit could hit a 10-year high in the coming fiscal year if it decides to keep rents unchanged. --RTHK